FAAN boss urges FG to address high taxes in aviation business

chika ebuzor

September 27, 2017 8:31 PM

Dunoma made the call at a seminar organised by the Abuja Transport and Aviation Correspondents Association (ATACA), on Wednesday in Abuja.

The Managing Director, Federal Airports Authority of Nigeria (FAAN), Mr Saleh Dunoma, has urged the Federal Government to address issues of high taxes in aviation business in Nigeria.

Dunoma made the call at a seminar organised by the Abuja Transport and Aviation Correspondents Association (ATACA), on Wednesday in Abuja.

Represented by Mr Sadiku Rafindadi, Director, Commercial, FAAN, Dunoma delivered a Paper entitled: “Attracting Investment in Aviation Industry: The Role of Government and Industry Players” at the seminar.

He said that issues related to policy, civil aviation regulations, aeronautical charge regime and establishment of National Carrier, Maintenance, Repair and Overhaul (MRO) Facility were addressed to encourage foreign direct investment.

FAAN boss added that the development of Agro-Allied cargo infrastructure and the template for airport concessions should be given urgent attention by the government.

According to him, government needs to review aviation policies so as to guarantee reliability and trust to contractual agreements on airport concessions and leases in other to attract the right investment and funding.

“Government is seen as an enabler and should create an enabling and well-regulated environment that will attract the right industrial players to invest in the aviation sector.

“Nigeria is considered to be a good investment destination by most foreign investors, but they are, however, concerned by government inconsistent policies that could trap their investments.

“This challenge accounts for high insurance premium underwriters put on asset financing in Nigeria as it affects aircraft leasing, terminal management and other businesses.

“The country’s aviation sector will do better if all these issues are properly addressed,’’ he said.

Dunoma also enjoined industry players in the sector to form clusters that would encourage to draw government’s attention to issues of financing, regulations, policy and aeronautical charges to sustain the growth of the industry.

He also advised the local industry players to pool resources and skills together to attract investors and to set up aircraft maintenance centres in order to reduce the cost of aircraft maintenance.

According to him, local industry players should also get global cooperation in terms of a strategic alliance to pull resources and expertise.

Similarly, Mr Goddy Ike, an Aviation Expert, also called for concerted effort by the government and industry players to revamp the country’s aviation sector.

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Ike said the demise of the defunct Nigerian Airways was a result of poor management and lack of focus by the Nigerian government.

He said that the industry could only grow if there is a viable and strong national carrier and good infrastructure in the country.

According to him, Ethiopian Airlines is known as the “new spirit of Africa’’ because it has been able to make things happen in the continent’s aviation sector.

Ike said that Nigeria aviation was faced with diverse challenges ranging from infrastructure issue to technical problems resulting from policy issues.

chika ebuzor